This board will focus on:
The "Market Reform Movement", abusive, fraudulent and illegal shorting ie. naked short selling (NSS) and the resultant "Failures To Deliver Shares" (FTDS) in the US stock markets.
Here's the link to our other board which focuses on The Fed. (FRBS) and provides IMO (bartermania), an excellent over-view of the enire problem (and how we've gottten there). It shows the connections and solutions to these 2 boards' largely intertwined and essentially...the same issues (a specific issue here and the grand scheme on the other board)... http://www.investorshub.com/boards/board.asp?board_id=3319
REG. SHO FAILURES TO DELIVER LISTS:
Search the Reg SHO List...Data collected & processed for all trading days
NYSE List of Settlement Problem Securities:
NASDAQ Threshold Securities List:
NYSE Order Trac (daily short interest on the NYSE...FTD's are not included):
Info. on reg SHO:
"Strategic Delivery Failures in US Equity Markets"
Bud Burrell - Front and Center
Bud Burrell's blog from The Sanity Check:
From The "Bud" Files - Correspondence From Bud Burrell:
Discovery of Massive Links to Financial Terrorism, Global Fraud, and Treason/Betrayal - 2005
Friends, As you know, I have spent an enormous amount of time studying the Naked Short Selling scandal and related criminal conspiracies. At every turn in this five year period of my focus, I have been led systematically to the recurring conclusion that no matter how intertwined the elements, no matter how the parties were interrelated, I was always finding more evidence of more links and coordination between the players, not only domestically, but globally. I have found literally hundreds of links between thousands of highly coordinated players, more thousands of companies, and now, most probably Governments, including elements of our own US Government.
These links have continued to literally mushroom to a point that I had to consider the potential for a much larger, highly disciplined and professionally organized criminal conspiracy based on intelligence network parallels between securities scams of all kinds, pump and dump promoters, internet bashers, professional short sellers, domestic and offshore hedge funds, broker-dealers, clearing firms and organizations, transfer agents, global banking and foreign trusts, every form of international criminal syndicate, regular and electronic counterfeiting of all forms of securities, and massive global money laundering. The network set up to mastermind this is directly comparable to an intelligence network, with central control, case officers for the respective areas, and field agents. It is not something that has been created overnight, but has taken literally years to construct, pulling together disparate elements from every part of the global financial economy, world-wide organized crime, and international terrorists.
(The rest of this post is here: http://www.thesanitycheck.com/Portals/0/Bud1.pdf )
The "Bud" Files - Correspondence From Bud Burrell
Here is the collection of correspondence that TheSanityCheck.com proudly presents as, "The Bud Files."
(Every week or so we will be adding additional content. Check in and see the latest on a frequent basis.)
Discovery of Massive Links to Financial Terrorism, Global Fraud, and Treason/Betrayal - 2005
Has Naked Shorting Gone So Far Out of Control, It Could Meltdown the Financial System? 2004
What is the Real Agenda of Our Regulators? 2004
Observations on Keeping Your Head On Straight When All Are Losing Theirs (and this isn't' a Revolution YET) - 2004
Time Decay And The Shorting Issue/Time To Pass The Baton - 2005
Summary Of Crisis and Recommendations for XXXX Company - 2003
Letter to Al Gonzalez, Then White House General Counsel - 2003
Letter to Harvey Pitt, SEC Chairman - 2002
(Go here to read these: http://www.thesanitycheck.com/TheBudFiles/tabid/85/Default.aspx )
THE BURRELL TAPES: Bud Burrell is a corporate finance generalist specializing in development stage companies. He has extensive experience in sales, trading, and marketing of development stage companies on a global scale.
(A new 40 minute update by Bud. It seems like it was done within the past few days. Today is 2/25/2006.)
[b]Red Mafiya : How the Russian Mob Has Invaded America
by Robert I. Friedman
Link to book: http://www.amazon.com/gp/product/0316294748/qid=1137384559/sr=2-1/ref=pd_bbs_b_2_1/103-7712674-09446....
(A review of this book) Brain to Pinky: "Take over the world!", March 14, 2003
Reviewer: Derek Pillion "OrthoByzEgypt" (Camp Hill, PA) - See all my reviews
RED MAFIYA by Robert Friedman is a report on some of the figures and actions of the Russian mob in the United States today. Although, there are some claims that this book is "anti-Semitic," the author is himself Jewish. Friedman was a brave author to write and publish this because of the nature of the criminals he is trying to expose.
The Russian mob has been making tremendous headway in its criminal undertakings since it first took root in the 1970's. It is made up of many Soviet emigres who were brought over to the US because of some of their "refugee" status. Many are Jews brought over through the auspices of Jewish aid and refugee organizations. The two largest centers of Russian mob activity are Brighton Beach (in Brooklyn) and Miami. Many of its members are brilliant and highly educated, some holding PhDs in engineering, mathematics and economics. They have been involved in pretty much everything in which illegal money is to be made
: the drug trade, prostitution, sex-clubs, gasoline bootlegging to avoid excise taxes, money laundering, arms deals, extortion, possibly rigging NHL games, jewelry theft and smuggling, the list goes on and on...
One of the reasons for the Mafiya's success is that is has two entire countries to base themselves in: Russia and Israel. Russia is completely corrupt with a crumbling economy and infrastructure. Israel offers a safe haven because it does not extradite its citizens and any Jew fleeing peresecution can seek refuge there. Israel also has very lax banking laws, to encourage the income of capital, so billions of dollars have been illegally laundered there over the years. Most of the top players in the Russian mob are Jewish, including Elson, Agron, Nayfeld, Balagula, noted author Yuri Brokhin, politically connected orthodox Rabbi Ronald Greenwald, Ludwig "Tarzan" Fainburg and the most powerful, Semion Mogilevich. Some, like Ivankov, are not Jewish but hold Israeli citizenship. The fact that many of the mobsters are Jewish is mentioned by Friedman as a cause of law-enforcement's lack of motivation in tackling the issue because it would inflame extremly sensitive political interests. Prominient names appear in this book who have had cameos with mobsters--all the way up to Bill Clinton and Al Gore.
Twenty-Five Ways To Suppress Truth:
The Rules of Disinformation
(Includes The 8 Traits of A Disinformationalist)
by H. Michael Sweeney
(Link to this site and these very long articles: http://home.datawest.net/esn-recovery/artcls/disinfo.htm
And a link to a copy on this message board: http://www.investorshub.com/boards/read_msg.asp?message_id=9357758
Permission to reprint/distribute hereby granted for any non commercial use provided information reproduced in its entirety and with author information in tact. For more Intel/Shadow government related info, visit the Author's Web site. copyright (c) 1997, 2000, 2001 All rights reserved (Edited June 2001)
Charles Biderman - Founder and Chief Executive Officer
"Price is a function of liquidity and has nothing to do with value."
TRIMTABS INVESTING: Using Liquidity Theory to Beat the Stock Market
By Charles Biderman, with David Santschi
This book begins by describing how Charles Biderman developed the basic principles of liquidity theory in the wake of his own personal bankruptcy. We argue that the stock market is basically a casino in which the house-public companies and the insiders who run them-buys and sells shares with the players-institutional and individual investors. Stock prices in the stock market casino are primarily a function of liquidity-the supply of stock and the demand for it-rather than fundamental value.
Then we outline the building blocks of liquidity theory and show how they can be used to predict the direction of the stock market.
The second section demolishes the conventional Wall Street wisdom that earnings growth drives stock prices. It demonstrates that liquidity carries far more predictive power in the stock market casino than value investing.
In further chapters, we show how investors can track the components of liquidity theory using readily-available sources, including Internet sites and financial newspapers. Drawing on years of experience in analyzing stock market liquidity, we explain how investors can use these components to beat the stock market casino.
The third section takes a look back at the past ten years of stock market history. During this period, investors experienced an astonishing range of market conditions, from a secular bull market to a bubble to a brutal bear market to a tentative recovery. This section focuses on liquidity conditions during these tumultuous years and how they influenced the direction of the stock market....(and more at the webpage.)
Welcome to TrimTabs Investment Research
TrimTabs Investment Research is the leading independent institutional research firm providing daily coverage of U.S. stock market liquidity including mutual funds flow, exchange traded funds flow and withheld income and employment tax collections.
Founded by Charles Biderman, TrimTabs has provided institutional investors - including hedge fund managers, market strategists, and portfolio managers - with trading strategies and insights since 1990. Biderman is interviewed regularly on CNBC and Bloomberg and is quoted frequently in the financial media, including Barron's, The Wall Street Journal, and Investor's Business Daily.
The key to understanding the movement of the U.S. stock market is liquidity - the amount of shares available for purchase and the amount of money available to buy them. TrimTabs liquidity research has proven to be a reliable macro indicator on which to base trading and investment decisions.
SEC Regulation SHO: http://www.sec.gov/rules/final/34-50103.pdf
Articles on reg SHO:
A very important article that just came out about reg SHO...ect...from IBD. Here's the link:
NCANS (National Coalition Against Naked Short Selling - Failing to Deliver) homepage:
National Coalition Against Naked Short Selling - Failing to Deliver...***MESSAGEBOARD***
NCANS ( http://www.ncans.net ) is a grassroots advocacy group composed of small investors who are tired of the predatory hedge funds on Wall Street violating the rules against naked shorting - the "Failing To Deliver" of the shares they sold to unsuspecting investors, who believe that the electronic tick that is represented in their brokerage statement represents a real share, rather than an electronic counterfeit with none of the attendant rights or protections of a real share. We want the regulators to enforce the rules in an impartial manner, not selectively and for the benefit of those who abuse the system.
Why Is Naked Short Selling/Failing To Deliver Such A Big a Deal, and Why Should I Care?...
NCANS Member List:
NCANS Yahoo! Groups message board is here:
Bobo's Sanity Check
Sanity Check - The Blog:
Link to the Blog: http://www.thesanitycheck.com/BobsSanityCheckBlog/tabid/56/Default.aspx
"Bob O'Brien's Sanity Check Blog
Author: bobo Created: 1/10/2006 10:09 AM
This blog is dedicated to Bob O'Brien's Sanity Check editorials, and discussions about the Market Reform Movement, the SEC, failing to deliver/naked shorting, etc. It was created so that his many detractors and fans can tell him that he is full of it, correct his mistakes, rant and rave, kowtow, preen, or whatever seems appropriate. The only sins are being boring, or inarticulate, or dim."
Welcome to The Sanity Check
This all-new Sanity Check website is intended to be the gathering place for the Market Reform Movement. "Market reform", because all evidence suggests that our U.S. equities markets are out of control, and will either collapse under the weight of their own larceny, or be reformed, and operate in a fair and reasoned manner. The most pressing issue concerning us all is the Naked Short Selling crisis affecting our stock market. This practice is a cancer whose malignancy threatens popular faith in the integrity of the entire market system.
Bob's column will now appear exclusively at this site, under the "Bob's Sanity Check" tab. Other commentators will get their own tabs. CFRN.net has a new forums area where interested individuals can become bloggers themselves, sharing their ideas and observations with others. The Faulking Truth and Investigatethesec.com and NCANS.net will all maintain their own discrete sites, with this portal acting as a supplement to those sites' fine work.
Rule 15c6-1 http://www.law.uc.edu/CCL/34ActRls/rule15c6-1.html
Rule 15c3-3 http://www.law.uc.edu/CCL/34ActRls/rule15c3-3.html
Section 8 (1934 Act) http://www.law.uc.edu/CCL/34Act/sec8.html
Section 17A (1934 Act) http://www.law.uc.edu/CCL/34Act/sec17A.html
Section 17 (1933 Act) http://www.law.uc.edu/CCL/33Act/sec17.html
Section 20 (1934 Act) http://www.law.uc.edu/CCL/34Act/sec20.html
The Sanity Check Forum & Message Board:
Bob O'Brien's Sanity Check Blog
Mark Faulk's Blog
Dave Patch's Blog
Bob O'Brien's Podcasts
Bob O'Brien's CFRN.net Podcast - #1 ...
Bob O'Brien's CFRN.net Podcast - #2 ...
Bob O'Brien's CFRN.net Podcast #3 ...
Bob O'Brien's CFRN.net Podcast #4 - January 3, 2006 ...
Bud Burrell Podcasts
Bud Burrel's Podcast CFRN.net Series - on R/hand, middle page
Mark Faulk Podcasts
Mark Faulk CFRN.net Podcast #1
Mark Faulk's CFRN.net Podcast #2
Mark Faulk's CFRN.net Podcast #3
Dave Patch Podcasts
Dave Patch's CFRN.net Podcast #1 ...
Dr. Patrick Byrne, OSTK CEO Podcasts
Byrne's Businessjive.com Naked Short Selling 101 primer podcast
Patrick Byrne's CFRN.net Podcast
Patrick Byrne's Second Businessjive.com Interview
(Link to these Podcasts are here: http://www.thesanitycheck.com/Podcasts/tabid/60/Default.aspx )
(Old version/Older posts)
Sanity Ceck website:
INVESTIGATE THE SEC.COM
We have received several comments from petitioners about who we are and what we are doing. Some understand the issues of Naked Shorting while others are still not fully informed. If you bear with me I will try to answer these questions
Who we are:
Those who organized this petition are a small focus group of investors who have waited patiently for Wall Street to clean up the Naked Shorting issue. We now believe the Regulators are (were) partly to blame for the abuse. Because we are merely average investors, we could not come up with the proper lobby power to fight this in Congress and felt it was time to enlist all those who feel cheated or abused by the Naked Shorting mechanisms. We need all of you to assist us in our fight. We span the globe from East to West Coast of the USA, as well as Canada and Belgium. We are in no way affiliated with any specific company, nor are we affiliated with any short sellers. We do have investments in companies that are fighting this war, although our focus has broadened into a total campaign for all those who have suffered by this abuse
How you can help:
Congress has told me that one of the primary reasons that our issue has not seen the attention we seek is due to a lack of visibility to the issue. Congress is not seeing their constituent's voice concern over this issue and has failed to see any appreciable media attention on this abuse. They are listening and believing what the SEC tells them because that is how Washington operates. You can help enlighten them by doing two things.
Sign this petition and seek out others to do the same. Congress works off the voice of their constituents and we need signatures identifying your dismay at the failures of the SEC. Like any petition, we need the labor force to pass the petitions around. Those laborers are you. When we reach a number that serves our goal we will submit the entire package to Congress for review
Contact your Congressional Representative (Senate and House) by phone or E-Mail and let them know how you feel. They need to hear it. To locate your Congressman or Senator we have placed a link in the Media Section for your ease. We recommend you also contact the following individuals and let them know you are concerned. In calling these individuals, our message(s) will not be as diluted as are our investments
Lawranne Stewart - House Financial Services (202) 225-4247
Brack Hudson - Senate Banking Committee (202) 224-7391
Members of the House Sub-Committee on Financial Services ( SEC Oversight sub-committee)
Thank you for your support and welcome to our site. If you have any comments or questions, please pass us an E-mail and we will try to assist you.
Sign the online petiton against Naked Short Selling here:
The Faulking Truth website...by Mark Faulk:
Commentary - Jun 7, 2004
- StockGate: A Call To Arms
by Mark Faulk
An Open Letter To All Those Concerned:
Email this article to anyone who will listen:
"StockGate: A Call To Arms"
Editor's note: If you would like to help us spread the word about this scandal, send us an email at [email protected]
, asking to be added to our "Stockgate activist list". We will email you only when we have new articles dealing with this issue. Please link the articles everywhere you can, post them on stock message boards, and send them to the appropriate public entites. To enact positive change requires positive action.
Other articles on the stock market scandal:
"The Berlin Connection?"
"Financial Terorism In America"
"Is Canada Robbing America Blind?"
Post your opinion in our guestbook at http://www.FaulkingTruth.com/GuestBook/
The Faulking Truth Message Board:
The Faulking Truth
Jan 17, 2006
The Circle of Greed: The Only Bull in this Stock Market is a Cash Cow by Mark Faulk
Hedge funds and brokerage firms. It's a match made in Wall Street Heaven. Brokerage firms make their money not by representing their clients, the average investor. They make their money by trading stock. It's that simple. And no one trades more stock that the hedge funds. Between the two of them, they have created some of the wealthiest individuals in America, lining their own pockets with outrageous salaries, unbelievable commissions, and massive bonuses that most Americans can only dream about. And they do it in a stock market where the average investor is still struggling to recoup even a fraction of the losses sustained in the market meltdown of 2000. (For the rest of this article go here: http://www.faulkingtruth.com/Articles/Investing101/1049.html
Mark Faulk is publishing a book on the subject of this board. The book can be pre-ordered here: http://www.theownersgroupinc.com/cart/
Naked Short Selling Letter to Regulators
R. Cromwell Coulson
Chairman & CEO
SEC Public Petition page: http://sec.gov/rules/petitions.shtml
Pink Sheets request is available at: http://sec.gov/rules/petitions/petn4-500.pdf
Comments by other concerned OTC market participants are available at: http://sec.gov/rules/petitions/4-500.shtml
Take a look at this site! There's lots of great MP3 files from the best known fighters against naked short selling/fails to deliver (ftd's)/counterfeit shares! At this time (1/8/2006), these hr. or so long interviews are very recent/current!
CFRN - The Christian Financial Radio Network
CFRN INVESTIGATES INTERVIEW ARCHIVE:
Darren Saunders (I just tried to listen to the first 5 of these and the programs couldn't be found. The sixth worked. 1/22/2006 12:19pm) :
Robert "Bob" O'Brien:
To access the "Burrell Dossier":
Looks like this is another good site on NSS, and they have a " Counterfeit America Discussion Forum"/message board also.
"Counterfeiting anything of monetary value in the United States is illegal. Yet shares of stocks involving hundreds or even thousands of companies are counterfeited on a daily basis without penalty. The governing body, the Securities and Exchange Commission (SEC), states that counterfeiting stock shares (also called Naked Short Selling) is NOT Necessarily against federal securities laws. This problem is many times worse than the Enron or Worldcom disasters, with as many as 7,000 businesses bankrupted and tens or hundreds of thousands of American citizen’s investments being destroyed. We ask, why is this crime being allowed to continue?
(link to the rest of this story and related info: http://www.investorshub.com/boards/read_msg.asp?message_id=9451084 )
An excerpt from April 25, 2005 (FinancialWire)
In a commentary, James Cramer, founder of TheStreet.com (NASDAQ: TSCM), cautioned that most small corporate CEOs are easy prey for hustlers.
“For years, when I have met privately with troubled companies, I have told them that under no circumstances should they ever succumb to a bank's wishes to place private equity money into their public structures. I have told them over and over again that the game is so rigged, the people you open up to will short your stock and the people they talk to will short your stock and you will have a vicious spiral down.
“To a person, these managers have criticized me for being paranoid, for being too suspicious and for being, well, nuts.
“Most CEOs have no idea how the stock market works. They are clueless. They have no idea how corrupt it can be, how dangerous it can be. This is a game for card sharps and for hustlers. It is a game where bankers are betting against you as they try to help you, where arbitragers and convertible-bond specialists crush you even as they claim to be in your camp.
“Every once in a while they get nailed; most of the time they get away with it. So they can prey again,” he noted.
IMPORTANT POSTS, ARTICLES AND LINKS FROM THIS MESSAGE BOARD (IN ROUGHLY THE FIRST HALF OF 2005)
North American Securities Administrators Association, Inc. (NASAA) 2005-11-24
750 First Street, N.E., Suite 1140
Washington, D.C. 20002
The Federal Reserve is
by Thomas D. Schauf
"There is a self-satisfied dogmatism with which mankind at each period of its history
cherishes the delusion of the finality of existing modes of knowledge."
Alfred North Whitehead
Pursuant to your request, I will attempt to clear up questions you have about the Federal Reserve Bank (FED). I spent much time researching the FED and these are the shocking and revealing conclusions.
THE FEDERAL RESERVE BANK IS A PRIVATE COMPANY
Article 1, Section 8 of the Constitution states that Congress shall have the power to coin (create) money and regulate the value thereof. Today however, the FED, which is a privately owned company, controls and profits by printing money through the Treasury, and regulating its value.
The FED began with approximately 300 people or banks that became owners (stockholders purchasing stock at $100 per share - the stock is not publicly traded) in the Federal Reserve Banking System. They make up an international banking cartel of wealth beyond comparison (Reference 1, 14). The FED banking system collects billions of dollars (Reference 8, 17) in interest annually and distributes the profits to its shareholders. The Congress illegally gave the FED the right to print money (through the Treasury) at no interest to the FED. The FED creates money from nothing, and loans it back to us through banks, and charges interest on our currency. The FED also buys Government debt with money printed on a printing press and charges U.S. taxpayers interest. Many Congressmen and Presidents say this is fraud (Reference 1,2,3,5,17).
Who actually owns the Federal Reserve Central Banks? The ownership of the 12 Central banks, a very well kept secret, has been revealed:
Rothschild Bank of London
Warburg Bank of Hamburg
Rothschild Bank of Berlin
Lehman Brothers of New York
Lazard Brothers of Paris
Kuhn Loeb Bank of New York
Israel Moses Seif Banks of Italy
Goldman, Sachs of New York
Warburg Bank of Amsterdam
Chase Manhattan Bank of New York
(Reference 14, P. 13, Reference 12, P. 152)
Link to the rest of this long article: http://www.worldnewsstand.net/today/articles/fedprivatelyowned.htm
Ming the Mechanic: The unknown 20 trillion dollar company
The NewsLog of Flemming Funch
by Flemming Funch
There is a busy little private company you probably never have heard about, but which you should. Its name is the Depository Trust & Clearing Corporation. See their website. Looks pretty boring. Some kind of financial service thing, with a positive slogan and out there to make a little business. You can even get a job there. Now, go and take a look at their annual report. Starts with a nice litte Flash presentation and has a nice message from the CEO. And take a look at the numbers. It turns out that this company holds 23 trillion dollars in assets, and had 917 trillion dollars worth of transactions in 2002. That's trillions, as in thousands of thousands of millions. 23,000,000,000,000 dollars in assets.
As it so turns out, it is not because DTCC has a nice website and says good things about saving their customers money that they are trusted with that kind of resources. Rather it is because they seem to have a monopoly on what they do. In brief, they process the vast majority of all stock transactions in the United States as well as for many other countries. And - and that's the real interesting part - 99% of all stocks in the U.S. appear to be legally owned by them.
In the old days, when you owned stocks you would have the stock certificates lying in your safe. And if you needed to trade them, you needed to get them shipped off to a broker. Nowadays that would be considered very cumbersome, and it would be impractical to invest via computer or over the phone. So the shortcut was invented that the broker would hold your stocks instead of you. And in order for him to legally be able to trade them for you, the stocks were placed under their "street name". I.e. they're in the name of the brokerage, but they're just holding them in trust and trading them for you. And you're in reality the beneficiary rather than the owner. Which is all fine and dandy if everything goes right. Now, it appears the rules were then changed so the brokers are not allowed any longer to put the stocks in their own name. Instead, what they typically do is to put the stocks into the name of "Cede and Company" or "Cede & Co" or some such variation. And the broker might tell you that it is just a fictitious name, and will explain why it is really more practical to do that than to put it in your name.
The problem with that is that it appears that Cede isn't just some dummy name, but an actual corporation that DTCC controls. And, well, if you ask anybody about this, who actually knows about it, they will naturally tell you that it is all a formality. To serve you better, of course. And, well, maybe it is. DTCC seems like a nice and friendly company. It is a private company, owned by the same people (major U.S. banks) who own the Federal Reserve Bank. And if they all stick to their job, and just keep the money and your stocks flowing smoothly, I'm sure that is all well and good. But if somebody at some point should decide otherwise, and there's a national U.S. emergency and/or the U.S. government becomes unable to pay its debts, well, they might just not give you your stocks back. Because legally they own them. Something to think about.
An fascinating article about this whole thing is here. I will include it at the bottom too, in case it should disappear. Not that I can vouch for or agree with everything the guy is saying, and some of it is a little whacko, but obviously he's been researching this quite a bit. You'll find very little about it on the net otherwise.
(Link to the rest of this article: http://www.investorshub.com/boards/read_msg.asp?message_id=8923186 )
Post#627 I believe "Bob O'Brien" highly recommended this book: Once in Golconda : A True Drama of Wall Street 1920-1938 (Wiley Investment Classics) (Paperback or Hardcover) http://www.amazon.com/gp/product/0471357529/ref=olp_product_details/104-9187136-7471917?%5Fencoding=....
Post#633 (Very Important Repost) From: Lori Livingston May 27, 2005 3:26 PM To: [email protected]; [email protected]
Subject: Elimination of Stock Certificates
Post#435 Posted by: Art2Gecko In reply to: rrufff who wrote msg# 428 Date:11/30/2005 5:03:49 PM
Wow, Great Comment to the SEC here by Dr. Jim DeCosta
Post#620 Posted by: rrufff In reply to: bartermania who wrote msg#618 Date:1/4/2006 8:16:46 AM
Thanks to bullnbear -
DAVE PATCH JANUARY 3RD 2006 NAKED SHORT SELLING
"The Dark Side of the Looking Glass"
Online slide presentations written and narrated by Patrick Byrne.
Slideshow #1: Naked shorting explained
Slideshow #2: The depth of the problem
Interview #3: Market Manipulation for Fun and Profit
28:00 mins 20Mb (Can be downloaded here: http://www.Businessjive.com/ )
Dr. Byrne’s “Dark Side of the Looking Glass” – Epilogue
(Link to this: http://www.businessjive.com/nss4/darkside4.html )
A good SI's message board on Naked Shorting (moderated and started by rrufff) is here:
Posted by: rrufff
In reply to: bartermania who wrote msg# 716 Date:1/23/2006 11:08:42 AM
Post #of 717
Open meeting before SEC Commissioners on Monday February 13, 2006 at 10:00AM
An open letter to the American investor from Rod Young - Eagletech CEO
I am requesting the presence of all who have the ability to attend Oral Arguments in front of the SEC commissioners on Monday February 13, 2006 at 10:00AM where I will argue Pro-Se Eagletech Communications, Inc.’s affirmative defense that the SEC has violated the Constitutional 5th Amendment property rights of shareholders by Regulation SHO’s ‘Grandfathering’ of pre-Regulation SHO delivery failures. The SEC has ruled the Company’s publicly traded shares shall be De-Registered for not filing timely reports. That ruling is stayed pending appeal to the full Commission and pending further appeal to the U.S. Federal District Court and its appeal processes.
An astonishing sequence of events has presented us with this unprecedented opportunity! Fifteen minutes eyeball to eyeball with the five Commissioners appointed by the President of the United States to send any message we wish. This isn’t about whether Eagletech Communications filed its reports and everybody knows it! This opportunity to stand before the Commissioners in my opinion may be the first last and only that most of us may ever have. Let’s together figure out a way to use it to our greatest advantage!
This is a public meeting in a 300 person auditorium. Documentary film maker Hugo Cancio has agreed to film this meeting and the Secretary’s office has confirmed that filming such meetings is a common occurrence. The Commission will supply a court reporter; the transcript will be available for purchase the next day. Enforcement division attorney and my opponent Anthony Byrne has told me that Oral Argument hearings are typically available as real time streaming audio on the Commission’s website at www.sec.gov.
Eagletech has alleged in its affirmative defenses that the SEC has illegally taken the property of shareholder’s in violation of the 5th amendment to the U.S. Constitution. By ‘Grandfathering’ pre-regulation SHO delivery failures this agency of our Federal Government has conducted an ‘inverse taking’ of shareholder’s property without due process and without compensation when ‘Grandfathering’ suspended the settlement process which they are mandated to maintain in the Securities Exchange Act of 1934. By Grandfathering and then by De-registering Eagletech shares the SEC has taken shareholder’s property and given it to the criminal perpetrators who have sold counterfeit shares to the public with no intention of, and now no requirement to ever deliver them.
To everyone’s astonishment Administrative Law Judge Kelly gave leave to appeal his decision on this theory (see pages 4 and 5 of his opinion attached to this email).
The SEC’s Enforcement Division has chosen to blatantly ignore evidence of criminal Naked Short Selling misconduct and instead has chosen to sweep the crimes under the rug by De-Registering the Company’s stock. Eagletech has provided to the SEC the following evidence of criminal misconduct:
1 A toxic PIPE financing was organized by five managing directors of Salomon Smith Barney.
2 Ten days after the initial meeting at Salomon’s World Trade Center offices the now convicted Anthony Elgindy and his Short Selling Cartel appeared on chat boards claiming that Eagletech’s was a scam and that its press releases announcing its patent were false. The patent was issued 30 days later as well as a second patent a year later. Within the year Eagletech successfully deployed its technology in the three largest telecommunications markets in the Southeast U.S., making its “Eagle1Call” product available to 9.5 million people who could purchase provision and maintain the product from the Internet in a matter of minutes.
3 Elgindy associate Peter Michaelson testified in the Elgindy trial that he and others routinely contacted the SEC with tips of “Scam Companies” his organization had targeted.
4 Within a few months SEC enforcement attorney Justin Arnold issued a subpoena for information parroting nearly word for word Michaelson’s false allegations.
5 In an article published by author James Cummins, former 15 year former SEC Enforcement Attorney Brent Baker was quoted “For years the SEC was unable to control the infamous ‘pump-and-dump’ schemes of stock market criminals across the country, and actually developed a culture that believed that illegal naked short selling may be a counterbalancing force to the pump-and-dump.” A stunning admission!
6 On July 10, 2002 Forbes Magazine published the first national ‘expose’ of the ‘Naked Short Selling/Toxic Financing’ problem wherein Rod Young and Eagletech Communications were the lead subjects of the article. Three days later Washington DC lobbyist Jack Wynn told me that Steve Forbes was contacted by someone asking him to back off the story. A year later an unconfirmed source identified that someone as then SEC chairman Harvey Pitt. Wynn would later be drafted to author a position paper on the Naked Short Selling scandal for the Busch re-election campaign. They know!
7 Two Licensed Broker/Dealers at the CBOE (Their money ended up in the same escrow account with the five managing directors at Salomon Smith Barney) who didn’t disclose that they were Broker/Dealers invested in the PIPE financing, and began short selling Eagletech stock prior to the closing of the funding (Insider Trading).
8 The New York State Supreme Court granted Eagletech its DTC and NSCC trading records. The unprecedented ruling denied the DTCC’s request for a protective order. NSCC CNS (Continuous Net Settlement) Reports confirm that those short sales failed delivery for 252 trading days (one calendar year), making them illegal Naked Short Sales.
9 DTC participant 5099 reportedly a secret account at the CDS (Canadian Depository for Securities, the CDS is a subsidiary of the DTCC) failed delivery for 212 days. DTC Participant account 5099 is reportedly a special account that clear(s)(ed) through Euroclear for seven Canadian brokerages: Thompson Kernaghan, Wolverton Securities, Global Securities, Pacific International, Canacord Capital, Yorkton Securities, Research Capital, with now defunct TK being replaced by TD Waterhouse.
10 Forensic Economist and former Undersecretary of State Robert Schapiro analyzed three years of Eagletech’s CNS reports. He concluded that 37 DTC Participant firms used the NSCC ‘Stock Borrow Program’ to fail delivery of Eagletech stock in excess of the three day delivery rule and to continue delivery failures for up to 252 trading days. In light of DTCC Deputy General Counsel Larry Thompson’s revelation that the NSCC ‘Stock Borrow Program’ is used to cure only 18% of daily aggregate fails, it could be reasonably concluded that these 37 DTC Participants manipulating Eagletech’s stock represent only the tip of the iceberg, while the other 82% of daily aggregate fails promulgate through the Ex-clearing system.
11 The SEC produced discovery evidence to Eagletech in it’s De-Registration action, 49,489 pages and an electronic trade journal of 43,723 Eagletech trades over a 17 month period. The trading documents chronicle nearly half of the trades during that period were for the proprietary accounts of the Broker/Dealers (Market Makers) presumably using the ‘Bona Fide Market Maker’ exemption. For example: the metrics of a single days trading, May 12, 2000 revealed: 110 persons bought Eagletech stock, 3 persons sold Eagletech Stock totaling 81,934 shares. 18 Broker/Dealers bought or sold Eagletech stock for their own account totaling 300,778 shares. The marketplace reported 176,300 share Volume that day. Assuming there were Zero shares available for sale and those 18 Broker/Dealers used their ‘Bona Fide Market Maker exemption’ to fill the orders there is still a discrepancy of 206,412 shares. Where did they come from? Why weren’t they reported to the Marketplace? How’s that possible? The Metrics for May 15, 2000 are similar. So are the Metrics for May 16, 2000 and on and on and on… This data was supplied by the SEC as discovery in Eagletech’s De-Registration action. When it is put back in their face they won’t even acknowledge it let alone explain it! (See the attached Excel spreadsheet - Note that the workbook file contains 21 separate sheets)
12 In 2002 Eagletech made three official complaints to the SEC that it was being manipulated by illegal Naked Short Selling. The second of those complaints resulted in a meeting with Enforcement Division attorney Justin Arnold at the SEC’s Miami office where Eagletech’s attorneys gave him a three inch binder of evidence showing the manipulation of 200 companies. The third complaint was made by U.S. Congressman Peter Deutsch on behalf of the Company. From the SEC, even being a U.S. Congressman doesn’t get you the courtesy of a response.
13 In January 2004 FBI agents came knocking explaining that a New Jersey labor racketeering investigation turned up manipulation of Eagletech by its first Investment Banker Bryn Mawr Investment who had contracted Colombo family mobster Frank Persico’s Staten Island brokerage firm to sell Eagletech shares. Eagletech’s civil suit had been successful in procuring trading records from Bryn Mawr subsidiary brokerage firm Lloyds Bahamas Securities where the FBI had no jurisdiction. Eagletech’s attorneys freely shared the records with the FBI. Immediately the FBI brought in the SEC, and Enforcement Division attorney Justin Arnold into its now joint investigation.
14 In June of 2004 the SEC announced proposed Regulation SHO to take effect six months later in January 2005. A threshold list of company’s failing 3 day delivery would be established. Non Reporting issues would not appear on the threshold list (Pink Sheet stocks), not a mention of Grandfathering. In July 2004 the SEC announced to the media that they were “preemptively targeting shell companies ripe for manipulation for de-registration” (1300 now Pink Sheet companies almost all manipulated by illegal Naked Short Selling from the OTCBB or NASDAQ). How convenient, the most abused companies in history exempted from the new rule purported to stop such abuse, not because of the lack of transparency cited but because it sweeps the SEC’s culpability in using their own words “delivery failures greater than a company’s total public float” under the rug forever!
15 In an August of 2004 luncheon meeting with a potential witness in Eagletech’s civil case a member of the CIA showed up un-announced to me wanting details of the involvement of Jonathan Curshen and his Costa Rican Offshore asset protection company Red Sea Management in the demise of Eagletech. I was encouraged to write a criminal referral to the U.S. Secret Service who is charged with investigating counterfeiting of corporate securities under 18-USC-514. I authored 15 pages with 100 pages of evidence implicating the SEC and the DTCC as accessories to the crime. That referral was hand delivered to the Secret Service in Washington DC as a courtesy by the agent.
16 The NBC Dateline Debacle. Does anyone doubt the power of the wealthiest entity on earth the DTCC, the real owner of most all of the shares of every company in America, and held for your benefit. OK when they are benevolent, but what about when they manipulate the media, and threaten their detractors. The public doesn’t know it but at least half of the B-roll footage of me was shot after the cancellation of the April 10th scheduled airing. The story you saw on July 31st wasn’t the story ready for broadcast on April 10th. Producer Sharon Hoffman who should have resigned in protest was rewarded with a promotion to senior producer at NBC News a week later. Between 2:48 PM on July 6, 2005 and 7:22 PM on July 31, 2005 I received 11 threatening phone calls, the final one just about five minutes after the conclusion of the Dateline broadcast. You can be sure it wasn’t GE’s attorneys doing due diligence on the story.
17 Grandfathering! The SEC didn’t have the courage to make it a part of regulation SHO. Even they know how much it smells! They leaked it to the press in late December 2004 to an uproar of detractors, many of them still calling for a Constitutional test of their authority to suspend the settlement portion of their Congressional mandate to oversee the maintenance of an efficient clearing and settlement system. To the SEC and the DTCC efficient means de-materialization. De-materialization without transparency (access to short sale data) would be the final step in the perfect crime. I don’t know who to quote, reportedly somebody at NASAA said “Over my Dead Body.” Boo-Yaa!
18 Which brings us back to the subject of this appeal before the Commission; every shareholder of any Company in America who purchased shares and can not get delivery has a cause of action against the SEC as an agency of the U.S. Federal Government for violation of their 5th Amendment Constitutional property rights. An action brought as a Constitutional Tort under the ‘Federal Tort Claims Act’ in multiple Federal District Courts across the country is governed by the State eminent domain law where the shareholder’s property was taken (your home state). There is a multitude of case law in every state in the Union covering illegal inverse taking of property by Governments and their agencies. The governments successful defense using the discretionary exemption from Tort Claims in most cases since the 1947 case ‘Elizabeth Dalehite, et al. v. United States’ does not apply here. The SEC does not have discretion to suspend the settlement process (Grandfathering), even temporarily as they claim. The bottom line is they are vulnerable here. An agency with a strained budget, 1,500 mostly inexperienced attorneys, that brings 500 new enforcement actions per year would crack under the burden of 50 or 100 or 500 Constitutional Tort cases brought against it. The real benefit of such cases would be court ordered discovery of the short selling data that the SEC routinely denies shareholders, issuers and the media, under FOIA (Freedom of Information Act). The first survival of a motion to dismiss could alter the landscape.
In a perfect world: the Sec’s auditorium on February 13th would be filled with a silent lynch mob of aggrieved shareholders (CMKX shareholders welcome), the 13 State Securities Regulators who I would introduce as dignitaries one by one to the Commissioners, CEO’s of other victim companies, the media, congressional staff assistants, and our rock star advocates Byrne, Burell, Patch, Obrien (with or without the rabbit suit), Faulk, DeWayne, and Ferrara. My apologies if I missed somebody. My well rehearsed presentation would have had input from attorneys, State Regulators, and others and would have been released to the media ahead of time. I would have paper hand outs and a CD’s of evidence documents for media and congressional staffers to take away with them. The 13 State NASAA Consortium would be holding a press conference at a nearby hotel at Noon that day announcing their Joint Initiative and possibly the filing of a few cases against the miscreants in a few states. Finally the SEC would admit they are outgunned beg the Senate Banking Committee for help, we get our hearings, new clearing and settlement and Hedge Fund legislation, and a workout plan to settle the trades once and for all.
In the real world: I’ll take what I can get and I’ll soldier on! I encourage and welcome your comments and your help. This is our fight! The future for our children may depend on what we do here today!
Rodney E. (Rod) Young
Eagletech Communications, Inc.
From rrufff's Silicon Investor's board:
From: kknightmcc 2/13/2006 10:32:50 PM
Eagletech's Rodney Young testified before the SEC today.
Listen to the Archived Webcast: February 13, 2006 http://www.connectlive.com/events/secopenmeetings/
Brought to us by NYBob 8/1/2006....Excellent presentation on NSS/FTD's by Patrick Bynre: http://www.businessjive.com/nss/darkside.html
---24 boardmarks here 12/23/2006 9:02am etz USA...anyone else want assist on this board?
it doesn't require much work..if, any...just a strong interest on the same side of the issues discussed here. just let me know thanks! when i get my finances straightened out i should be back here and more involved---